Did you notice that the share price of semiconductor companies has been pulling back recently?
Nvidia’s and Qualcomm’s share prices have dropped by 4.5% and 6%, respectively.
Given the overheated market environment that we are in, these hot stocks may decline further.
As their share prices pull back, you’ll want to turn your attention to a rising star, making your money work harder for you.
But before I share about this rising star, let’s review last week’s #PowerStocks pick of the week: Cognex (CGNX).
Review Of Last Week’s Pick Of The Week
Cognex (CGNX) was last week’s stock pick of the week.
It was shared that I’m waiting for its share price to drop to ~$44.50 and bounce before entering a swing trade.
Cognex’s share price has dipped to $44.50 before closing higher on Friday.
Let’s see how its share price performs on Mon before buying its shares.
With that, let’s focus on this week’s swing trading opportunity: Morgan Stanley (MS).
Why Is Swing Trading Morgan Stanley (MS) Worth It?
Source: morganstanley.com
Morgan Stanley (MS) is this week’s #PowerStocks pick.
This company is famed for its investment banking products and services to individuals and organizations.
After struggling for 2 years, its share price has met with a resurgence lately, outperforming the S&P 500 by more than 4x!
Furthermore, its share price has experienced numerous explosive upmoves in recent months, bringing home big returns for swing traders.
Its share price looks ready to rise too.
What’s the price area I’m watching for an entry?
Continue reading to get the details.
P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time?
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Performance Of US Stock Market vs Morgan Stanley (MS)
From the comparison chart above, can you tell that the share price of Morgan Stanley is in a mighty uptrend?
Knowing the trend is important because trading with the trend increases your chances of success.
Hence, you’ll want to look for buying opportunities here.
Next, let’s compare the performance of Morgan Stanley’s shares against the S&P 500.
While the S&P 500 has risen by nearly 3%, Morgan Stanley’s share price has risen by more than 13%!
That’s a mouth-watering outperformance of 4x!
Your money is more likely to bring greater-than-market returns by swing trading Morgan Stanley’s shares.
How Explosive Is Morgan Stanley (MS)?
Knowing that Morgan Stanley’s shares have been bringing in greater returns than the S&P 500 and that you are looking for a swing trading opportunity, let’s analyze the explosivity of its share price.
Its shares have shot up in price 12 times in the past 10 months!
With a market capitalization of $159b, such moves between 4.3% and 17.8% are explosive!
Yes, its shares are worth your time and money for a swing trade.
There’s something else I like about its share price.
It has pulled back and looks to be on the rise again.
Before you rush to enter your buy order, let’s conduct a deeper analysis to determine whether you should buy its shares for a swing trade now.
Key Price Levels
Let’s answer that burning question you have in mind: “Should I buy its shares for a swing trade now?”
Let’s begin by uncovering its key price levels (aka support and resistance zones).
Can you see a resistance area around $98.50?
It’d be better for Morgan Stanley’s share price to clear $98.50 before entering a swing trade.
In the meantime, I’m keeping this stock on my watchlist.
Finally, this is for educational purposes. Please perform your due diligence.
All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.
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Many new traders are often left confused by conflicting signs and signals.
Worse still, ~80% of traders lose money.
This is because trading isn’t just about skill alone.
It includes the mastery of your emotions.
But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market?
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